U.S., China seek to avoid trade war escalation, salvage Trump-Xi meeting in Malaysia talks

Top economic officials from the U.S. and China kickstarted talks in Kuala Lumpur on Saturday to avert an escalation of their trade war and ensure that a meeting happens next week between U.S. President Donald Trump and Chinese President Xi Jinping.

The talks on the sidelines of the Association of Southeast Asian Nations summit will chart a path forward after Trump threatened new 100% tariffs on Chinese goods and other trade curbs starting on November 1, in retaliation for China’s vastly expanded export controls on rare earth magnets and minerals.

The recent actions, which also include an expanded U.S. export blacklist that covers thousands more Chinese firms, have disrupted a delicate trade truce crafted by U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng over four previous meetings since May.

China’s top trade negotiator Li Chenggang is also participating in the talks. A Reuters witness saw Li arriving alongside He at Kuala Lumpur’s Merdeka 118 tower, the second-tallest building in the world, where the venue for the talks is located.